The federal government’s outstanding debt to electricity distribution companies in subsidy payments increased by 5.3 billion naira or 2.7 percent in the first five months of 2025 to 982.4 billion naira.
It surged from 196.4 billion naira to 201.7 billion naira, pushing the total subsidy debt to 982.4 billion naira between January and May 2025.
This underscores mounting financial pressures in the power sector and raises concern over the sustainability of ongoing subsidy interventions.
Figures from the monthly multi-year tariff orders obtained from the Nigerian Electricity Regulatory Commission showed that the subsidy on power was approximately 196.4 billion naira in January.